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1 February 2021
Boise Man Sentenced to 3.5 Years in Federal Prison for Health Care Fraud and Aggravated Identity TheftRead the Press Release
BOISE – Scott Alexander Laney, 38, of Boise, was sentenced in U.S. District Court to 42 months in federal prison for health care fraud and aggravated identity theft, U.S. Attorney Bart M. Davis announced today. U.S. District Judge B. Lynn Winmill also ordered Laney to serve three years of supervised release following his prison sentence, pay restitution totaling $29,795.49, and a fine of $2,500. Laney was convicted on October 5, 2020, following a bench trial.
During the five-day trial, the Court heard evidence that Laney executed a scheme to defraud Medicare and Idaho Medicaid in connection with the delivery and payment of urine drug screenings and committed aggravated identity theft. Laney worked as a sales representative in connection with two national companies that performed laboratory testing of urine drug samples. In that role, Laney setup fraudulent accounts using the names and identifying information of multiple nurse practitioners without authority. Laney’s misuse of the nurse practitioners’ information caused the payment of fraudulent health care claims that were not authorized by a medical provider and were not reasonable or medically necessary.
This case was investigated by the U.S. Department of Health & Human Services, Office of Inspector General with assistance from the Payette Police Department and Idaho Medicaid Fraud Control Unit.
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Akumin Corporation to Pay U.S. over $700,000 to Resolve Health Care Fraud AllegationsRead the Press Release
WILMINGTON, Del. – U.S. Attorney David C. Weiss announced today that Akumin Corporation and Delaware Open MRI Radiology Associates, LLC have agreed to a $749,600.00 settlement with the federal government to resolve allegations of health care fraud arising under the federal False Claims Act. Akumin provides diagnostic medical imaging services at more than 125 locations across seven states including eight locations in Delaware.
Although diagnostic imaging studies are typically performed by technicians, Medicare regulations require that certain procedures be supervised by a physician who is present in the office suite during the procedure. During an investigation of Akumin’s practices at its sites in Delaware and Texas, the government identified over 1,500 instances, most of them between 2015 and 2017, in which either no physician was present for studies that required supervision or Akumin was unable to determine whether a physician was present.
The settlement announced today resolves a lawsuit filed under the whistleblower provision of the False Claims Act. The government’s claims are based on a whistleblower suit filed by a former Akumin employee. A whistleblower suit, or qui tam action under the False Claims Act, is commenced by an individual, known as a “relator,” filing a complaint under seal in the U.S. District Court, and providing a copy of the complaint and other evidence to the local U.S. Attorney. The United States then has an opportunity to investigate the claims. The False Claims Act provides the whistleblower with a share of the government’s recovery.
“The regulations that apply to Medicare procedures are designed to ensure patient safety and to protect the integrity of the Medicare program,” said U.S. Attorney Weiss. “When providers fail to comply with Medicare regulations and properly document their compliance, they undermine both the quality of patient care and the effectiveness of the program. This office is committed to investigating and recovering payments from providers who falsely certify that they have complied with these regulations.”
“It is imperative that Medicare requirements be followed in order to ensure patient safety and uphold the high standards of care patients deserve and expect,” said Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “Working with law enforcement partners we will continue protecting federal health care programs and their enrollees.”
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the District of Delaware and the U.S. Department of Health and Human Services. Assistant U.S. Attorney Dylan J. Steinberg represented the United States in this matter.
Related court documents and information from the civil lawsuit are on PACER by searching for Case No. 1:19-cv-1593-MN.
29 January 2021
Wyoming man sentenced to prison for harassing, stalking Laurel woman in violation of protective orderRead the Press Release
BILLINGS — A Cody, Wyoming, man who admitted violating a protective order by stalking and harassing a Laurel woman and her family was sentenced today to 37 months in prison, three years of supervised release and ordered to pay $3,600 in restitution, Acting U.S. Attorney Leif Johnson said.
Donald Raymond Foote, Jr, 50, pleaded guilty on June 16, 2020 to interstate violation of a protective order.
U.S. District Judge Susan P. Watters presided. Judge Watters ordered Foote detained.
The prosecution said in court documents that in August 2017, the victim, identified as Jane Doe 1, began living on Foote’s property and that Foote became infatuated with her. Jane Doe 1 moved to the Laurel area in November 2017 and Foote continued to maintain contact with her. The relationship between Foote and Jane Doe 1 deteriorated. Foote began contacting the victim on a repeated basis by phone, text and through social media, and he continued to contact Jane Doe 1’s family and friends.
After an incident in August 2018, Jane Doe 1 obtained a temporary restraining order against Foote from Billings Municipal Court. In October 2018, the court issued a permanent order of protection, prohibiting Foote from threatening or committing acts of violence, harassing, annoying, disturbing the peace or communicating, directly or indirectly, with Jane Doe 1, and with two other victims. The order also required Foote to stay 1,500 feet from the victims as well as their residences, jobs and vehicles.
In December 2018, Foote’s vehicle was observed outside of Jane Doe 1’s residence. Law enforcement arrived and found Foote nearby. Foote claimed he had traveled to Billings from Cody to buy materials for his construction business and did not know where Jane Doe 1 lived. In subsequent searches of Foote’s vehicle and residence, law enforcement found multiple electronic devices and photographs of Jane Doe 1 and other victims. Evidence from the devices linked Foote to a fake “private investigator” Facebook page he used to contact Jane Doe 1 as well as several internet searches for the victim’s residence in Montana.
Law enforcement’s investigation found that Foote used multiple aliases designed to conceal his tracks and that he made more than 1,500 calls to Jane Doe 1 in the Fall of 2018.
Assistant U.S. Attorneys Zeno Baucus and Bryan Dake prosecuted the case, which was investigated by the FBI, Billings Police Department, Laurel Police Department and Yellowstone County Sheriff’s Office.
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United States Attorney’s Office Launches Law Enforcement Task Force Focused on Human TraffickingRead the Press Release
ALBANY, NEW YORK - Acting United States Attorney Antoinette T. Bacon announced today that her office, together with federal, state, and local law enforcement, has launched a law enforcement task force focused on combating human trafficking.
The task force is comprised of members from the United States Attorney’s Office; Federal Bureau of Investigation; Homeland Security Investigations; Drug Enforcement Administration; New York State Police; the Police Departments of Albany, Colonie, Rotterdam, Schenectady, Troy; Sherriff’s Offices of the Counties Albany, Schenectady, Rensselaer, and Ulster; Rensselaer County Probation Department; and the Offices of the District Attorneys of Albany, Rensselaer, Schenectady, and Saratoga Counties. The United States Attorney’s Office plans to expand the task force to cover all 32 counties it serves.
This week, the United States Attorney’s Office hosted a virtual training for members of the task force. National experts from the Department of Justice’s Human Trafficking Prosecutions Unit lectured on the Trafficking Victims Protection Act, coercion-based sex trafficking and forced labor, trauma informed interviewing, and proactive strategies to detect trafficking crimes.
Acting U.S. Attorney Bacon said, “Human trafficking is modern day slavery. Ruthless traffickers use force, lies, threats, coercion, and sometimes even drugs, to force victims into a life of commercial sex or tedious labor. Victims are trapped; and they need our help to reclaim their freedom. We launched this task force, during the 10th Annual National Slavery and Human Trafficking Prevention Month, to enhance law enforcement’s ability to dismantle human trafficking networks and to help restore victims’ lives.”
“Human trafficking is an incredibly dangerous crime and its impact on victims is immeasurable," stated Thomas Relford, Special Agent in Charge of the FBI’s Albany Field Office. "That’s why it's not enough to simply identify the violation, we must work together to prevent exploitation. Having a dedicated task force with our federal, state, and local law enforcement partners to address these issues here at home provides us more resources to identify, investigate, and arrest any perpetrator of this horrific activity.”
“Human trafficking is an egregious crime that dehumanizes its victims,” said Kevin Kelly, HSI Special Agent in Charge. “Through this task force, HSI is committing to work collaboratively in a victim-centered approach to investigate these heinous crimes and bring to justice those who prey on the most vulnerable in our communities.”
“There is an intrinsic relationship between human traffickers and drug-related crime,” said DEA Assistant Special Agent in Charge David Zon. “This training cements a law enforcement partnership focused on investigating and bringing to justice those responsible for crimes associated with human trafficking. I applaud the Northern District of New York for their focus and leadership in this Task Force.”
New York State Police Acting Superintendent Kevin P. Bruen said, “As law enforcement, any tool or additional working group we can be a part of, in order to fight and prevent a crime, is a welcome one. Human trafficking is a complex crime, and any person, regardless of race, sexuality or gender can be a victim. We will continue to work with all of our partners to make sure human traffickers are put in prison, and their victims get the help they need.”
Albany County District Attorney David Soares said, “Human Trafficking is a global issue and it will only improve our response to unify beyond the borders of our respective jurisdictions and work together to detect and combat this issue on all fronts. Recognizing that a strong and widespread law enforcement response to these types of crimes will effectuate the greatest change in the life of the individual victim as well as the larger community, my office is grateful to be included in this regional taskforce."
Rensselaer County District Attorney Mary Pat Donnelly said, “We welcome the opportunity to collaborate with the United States Attorney’s Office and other agencies as I believe a multi-agency approach is most effective. This is an opportunity to share knowledge and resources in order to combat human trafficking, prosecute those involved and assist those affected.”
Saratoga County District Attorney Karen Heggen said, “The Saratoga District Attorney’s Office is pleased to join with the other Task Force members in a coordinated and collaborative effort to combat the devastating impact of human trafficking in our region. Our office is committed to hold offenders of trafficking accountable for their criminal conduct by working with our Task Force partners.”
Rensselaer County Sheriff Patrick Russo said, “I applaud the U.S. Attorney’s Office for taking this initiative and we will assist in any way we are able.”
Ulster County Sheriff Juan Figueroa said, “I want to express my appreciation to the US Attorney's Office for recognizing the need for a Human Trafficking Task Force. We realize there is a need to combat this issue not only in Ulster County but throughout New York State. Human trafficking involves our immigrant communities who are vulnerable to the illegal sex trade and unfair labor practices. The Ulster County Sheriff's Office is PROUD to have a member participate in a collaborative effort to help combat human trafficking."
“Human trafficking can occur in any community and those victimized may be reluctant to come forward,” said Albany Police Chief Eric Hawkins. “This newly launched task force will allow for law enforcement partners at all levels of government to collaboratively investigate incidents of human trafficking and bring offenders to justice. In addition, the task force will help to raise awareness about human trafficking in our communities while empowering and assisting victims. I commend Acting United States Attorney Antoinette T. Bacon for her leadership in launching this task force and look forward to its success.”
“Having multiple agencies on the task force will increase its ability to investigate these crimes and result in more victims rescued and suspects apprehended,” said Colonie Police Chief Jonathan Teale.
Schenectady Police Chief Eric Clifford said, “The Schenectady Police Department is proud to partner with the United States Attorney’s Office and our local partners to combat human trafficking. I would like to thank Acting U.S. Attorney Bacon for leading this effort in the Northern District of New York and look forward to working with our community partners to bring attention to human trafficking and combat it in our city.”
Laura Bauer, Director, Rensselaer County Department of Probation said, “Rensselaer County Probation is looking forward to working with all involved with this valuable collaborative to combat human trafficking. Probation Officers recognize the devastating effect human trafficking has on victims, who are at times discovered to be the youth and adults with whom we work.”
The United States Attorney’s Office and its partners encourage the community to join in our efforts by staying alert for signs of trafficking, including:
- Is the person in the company of someone to whom he or she defers? Or, someone who seems to be in control of the situation, for example where they go or who they talk to?
- Does the person appear to be coached on what to say?
- Is the person living in unsuitable conditions?
- Does the person lack personal items and appear not to have a stable living situation?
- Does the person have freedom of movement? Can he or she leave where they live? Are there unreasonable security measures?
- Does the person seem preoccupied with his or her cellphone or internet-capable devices?
- Does the person have items, for example clothing, shoes, accessories, electronics, that he or she should not be able to afford?
- Is the child missing school or missing parts of the school day without explanation?
If you or someone you know is being trafficked, contact local law enforcement or report it to federal law enforcement through the National Human Trafficking Hotline at 1-888-373-7888 or 1-866-347-2423.
U.S. Attorney Warns Public to Be Wary of COVID-19 Vaccine ScamsRead the Press Release
PORTLAND, Maine: U.S. Attorney Halsey Frank is cautioning the public to be extremely skeptical of unsolicited offers to purchase COVID-19 vaccines.
Federal, state and local agencies have received complaints about scammers capitalizing on demand for the vaccine to access individuals’ personally identifiable information such as Social Security numbers, and money, using various schemes.
Among the tactics the scammers use are advertisements that promise early access to COVID-19 vaccines in exchange for a deposit or fee as well as offers to be put on a vaccine waiting list, again in exchange for money.
“These scammers are ruthless and relentless, and everyone needs to have their guard up,” said U.S. Attorney Frank. “People here in Maine, particularly the elderly, are desperate to get vaccinated as quickly as possible, and the con artists are exploiting that desperation to get access to their money and personal information.”
The FBI recommends checking your state’s health department website for accurate information on vaccine availability. The Maine CDC website has up-to-date information on COVID-19 vaccine availability.
For more information on COVID-19 scams, visit fbi.gov/coronavirus. If you are the victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud hotline at 866-720-5721, or online at justice.gov/DisasterComplaintForm.
Two Kirtland men charged with trafficking meth and illegal possession of 16 AR-15 style rifles, sniper rifles, shotguns and handgunsRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced today that a federal grand jury sitting in Cleveland returned an eight-count indictment charging Ernest Corrigan, age 57, and Andrew Householder, age 43, both of Kirtland, Ohio, with numerous federal drug trafficking and firearms charges.
Defendants Corrigan and Householder are both charged with conspiracy to possess with the intent to distribute controlled substances; possession with intent to distribute methamphetamine, heroin, cocaine and oxycodone and possession of a firearm in furtherance of a drug trafficking crime. In addition, defendant Corrigan is charged as a felon in possession of a firearm and ammunition.
According to court documents, in June of 2020, law enforcement agents identified the defendants as known traffickers of methamphetamines in Ohio and began surveillance measures. From August through December of 2020, law enforcement officers conducted a number of controlled buys of methamphetamines from a residence used by the defendants. On December 30, 2020, a search warrant was obtained for the residence used by the defendants. During the execution of the search warrant, law enforcement agents allegedly obtained more than a kilogram of methamphetamine and detectable amounts of heroin, cocaine and oxycodone. In addition, agents recovered 16 firearms, including AR-15 style rifles, sniper rifles, shotguns, and handguns; thousands of rounds of ammunition of all calibers and approximately $4,000 in cash.
While searching the residence, law enforcement agents also discovered a methamphetamine lab and pill press allegedly used to make counterfeit Adderall pills, which contained methamphetamine.
Defendant Corrigan is prohibited from possessing a firearm due to two previous federal convictions for trafficking methamphetamine and a conviction for the possession of a firearm in furtherance of a drug trafficking.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation, Ohio Attorney General’s Office, Geauga County Sheriff's Office and Cleveland Heights Police Department. This case is being prosecuted by Assistant U.S. Attorney Kevin P. Pierce.
This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Two Durham Men Sentenced to Federal PrisonRead the Press Release
GREENSBORO, N.C. – Two men from Durham, North Carolina, were sentenced to federal prison in separate cases this week, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
RYAN KENNETH RICHMOND, 25, pleaded guilty on August 11, 2020, to one count of felon in possession of a firearm. On January 28, 2021, United States District Judge Catherine C. Eagles sentenced RICHMOND to 120 months of imprisonment, followed by three years of supervised release.
In a separate case, RASHAAD ALMADD COX, 34, was sentenced by Judge Eagles on January 25, 2021, to 115 months of imprisonment followed by three years of supervised release. COX pleaded guilty on May 7, 2020, to one count of possession with intent to distribute a controlled substance and one count of felon in possession of a firearm.
“The lengthy sentences handed down this week are proof that we mean business when it comes to violent crime,” said U.S. Attorney Matt Martin. “We are working hard with our state and local law enforcement partners to reduce violent crime in Durham, and we will continue to seek the maximum penalties available under law for violent offenders in Durham and other violent crime hotspots.”
RICHMOND was described in filed documents and court proceedings as a Southside Blood gang member associated with the Nine Trey Gangster Bloods in Durham. A feud between this group and the Eight Trey Gangster Crips escalated on December 3, 2019, when multiple members of both groups were calendared to appear in the Superior Court of Durham County. Following an argument at the courthouse, four men, including RICHMOND, got into a stolen silver Hyundai. A dark gray Chrysler 300 stopped next to the Hyundai and began shooting at the Hyundai. The cars then chased each other past the American Tobacco Campus and through downtown Durham, exchanging gunfire. The Hyundai eventually pulled into a parking lot adjacent to a church on Duke Street. Church members, operating a daycare in the building, heard multiple gunshots and saw four men walk away from the vehicle. The Durham Police Department responded and found that the vehicle had been shot multiple times, the windows were shot out, there appeared to be blood in the rear passenger area, and there were numerous spent 9mm and .300 caliber cartridges inside the vehicle. They recovered four firearms from the parking lot.
The courthouse shooting incident led to more violence over the next two days, including drive-by shootings that occurred at the Oxford Manor housing complex and at a convenience store in south Durham.
RICHMOND was arrested on December 9, 2019. Various firearms and ammunition recovered in the investigation were linked to RICHMOND, who was convicted in 2017 of the following felonies: fleeing to elude arrest, possession with intent to distribute marijuana, and maintaining a vehicle to keep or sell a controlled substance.
According to court documents, on June 6, 2019, COX and a passenger were stopped on Tower Boulevard by detectives with the Durham County Sheriff’s Office Anti-Crime/Narcotics Unit. The passenger refused to comply with several directions and warnings, and COX put the car into drive and sped away, nearly hitting the detectives in the process. After a high-speed chase, COX crashed into a tree at a church playground in the Hope Valley neighborhood and he and the passenger fled on foot. Both were apprehended. Detectives found oxycodone and MDMA pills in a discarded fanny pack that matched one COX was seen wearing. The next day, detectives found a 9mm handgun in debris where COX had crashed and fled the vehicle. COX was charged by the state but bonded out of pre-trial custody.
Approximately six weeks later, on July 16, 2019, officers with the North Carolina Department of Public Safety, Probation and Parole (NCPP) conducted a warrantless search and probation check at COX’s residence. COX was then on probation for an April 3, 2019 conviction in the Durham County Superior Court for Elude Arrest Motor Vehicle with Two Aggravating Factors. During the search, officers seized a total of six firearms, twelve magazines (four with extended capacity), and 647 rounds of ammunition.
The RICHMOND case was investigated by the Federal Bureau of Investigation’s Raleigh-Durham Safe Streets Task Force with assistance from the Durham Police Department.
The COX case was investigated by the FBI’s Raleigh-Durham Safe Streets Task Force with assistance from the Durham County Sheriff’s Office and the North Carolina Department of Public Safety, Probation and Parole.
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Tulsa Man to Spend 3 Years in Federal Prison for Impeding a Domestic Violence ProsecutionRead the Press Release
A Tulsa man was sentenced today in federal court for trying to stop a victim from testifying against him, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell sentenced Jonathan David Arneecher, 36, to 36 months in federal prison followed by three years of supervised release. On Oct. 30, 2020, the defendant pleaded guilty to tampering with a witness, victim, or informant by intimidation, threats, corrupt persuasion, or misleading conduct.
“Jonathan Arneecher was so afraid of the truth that he tried to persuade a domestic violence victim to change her story and skip her court appearance. His witness tampering actions only made his bad situation worse,” said U.S. Attorney Trent Shores. “Domestic violence victims are often more resilient than their abusers give them credit. This case was no different. I hope that this victim can get the services she needs while Arneecher spends the next three years in federal prison.”
In his plea agreement, Arneecher admitted that he acted with intent to influence, delay and prevent the victim’s testimony in his pending criminal case. On Aug. 23, 2020, while he was incarcerated on charges of assaulting an intimate partner, he called the victim from jail and attempted to persuade her to contradict her earlier sworn testimony. He specifically urged the victim to tell federal agents and prosecutors that she lied about his assault against her. On Aug. 25, he again called the victim and told her not to show up at court and to stay at his mother’s house.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Richard M. Cella prosecuted the case.
Sinaloa Cartel-Linked Fentanyl and Heroin Traffickers Plead Guilty, Sentenced in Operation CookoutRead the Press Release
NEWPORT NEWS, Va. – The mastermind behind an extensive drug trafficking ring entered a guilty plea this week, and four other defendants either entered pleas or were sentenced recently to substantial terms in prison for distributing large amounts of fentanyl, heroin, and cocaine in Newport News and North Carolina.
“Fentanyl and heroin have inflicted immeasurable amounts of pain and brought devastation to families across the United States and in EDVA,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Due to their tenacity and commitment, our federal, state, and local law enforcement partners seized 24 illegal firearms, 30 kilograms of heroin, and enough fentanyl to kill over 14 million people, saving our communities from significant loss of life and destruction.”
According to court documents, Ramiro Ramirez-Barreto, 44, from the Mexican State of Morelos, operated a continuing criminal enterprise with ties to Virginia, North Carolina, Texas, and California. Ramirez-Barreto was linked to the Sinaloa Cartel in Mexico, as were his drug sources, and his operation supplied cocaine, heroin, and fentanyl to numerous drug trafficking organizations in Newport News, Virginia and in Henderson and Greensboro, North Carolina. According to one of Ramirez-Barreto’s many North Carolina customers, Ramirez-Barreto supplied him with 60 kilograms of heroin from early 2018 to mid-2019. Another one of Ramirez-Barreto’s customers was an inmate in federal prison operating a drug trafficking organization in Henderson, NC using a bootleg mobile phone.
Ramirez-Barreto entered his guilty plea on January 25, 2021, and he is scheduled to be sentenced on July 12, 2021, by U.S. District Judge David J. Novak. Ramirez-Barreto’s residence—where law enforcement found 19 kilograms of heroin and over $600,000 in cash—is being forfeited in connection with this case. In addition, he faces a mandatory minimum term of 20 years in prison and a maximum term of life in prison.
In addition to Ramirez-Barreto, four additional defendants either entered guilty pleas or were sentenced this week by Judge Novak for their role in the drug trafficking conspiracy described above:
- Tangynika Johnson, 44, of Henderson, NC, assisted co-defendant Cory Bullock, an inmate in a West Virginia federal prison, in getting drug proceeds delivered to Ramirez-Barreto. Johnson pleaded guilty on January 29, 2021, to using a communication facility in furtherance of drug trafficking. She is scheduled to be sentenced on July 12, 2021, and faces a maximum penalty of four years in prison.
- James Noyes, 55, of Newport News, was a mid-level heroin distributor within co-conspirator Damarcus Mackie’s drug trafficking organization. Noyes was sentenced to 10 years in prison on January 29, 2021.
- Keith A. Brownson, 42, of Henderson, NC, was a cocaine and heroin dealer who arranged drop-offs of drugs and drug proceeds with Ramirez-Barreto. Brownson pleaded guilty on January 29, 2021, to conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine. He is scheduled to be sentenced on July 21, 2021, and faces a mandatory minimum of five years and a maximum penalty of 40 years in prison.
- Russell P. Johnson, 50, of Suffolk, VA, was sentenced to 140 months in prison on January 25, 2021, for conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, and 500 grams or more of cocaine.
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Background on Operation Cookout
In August 2019, over 120 law enforcement officers from 30 law enforcement agencies in Virginia, North Carolina, and Texas executed a major operation, known as Operation Cookout, which resulted in 35 defendants being arrested for their respective roles in the conspiracy, along with the seizure of 24 firearms, 30 kilograms of fentanyl, 30 kilograms of heroin, 5 kilograms of cocaine, and over $700,000 in cash.
“This operation shows our resolve, along with our area law enforcement partners, to never stop working—even throughout a global pandemic—to protect the communities we serve from these deadly drugs,” said Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division. “Operation Cookout successfully removed a number of violent drug organizations from the streets, and will enable these communities to focus on what matters most right now—the health and safety of their loved ones.”
“Operation Cookout demonstrates the extraordinary results that can be achieved when local and federal law enforcement work together to combat drug trafficking,” said Raymond Villanueva, Special Agent in Charge for the Homeland Security Investigations (HSI) Washington, D.C. field office. “Drug trafficking is a transnational problem and coordination like what we’ve seen here is the best way to combat and disrupt these trafficking networks.”
To date, 45 total defendants have been charged in Operation Cookout. Of those, 42 have admitted their criminal conduct and pleaded guilty. Thus far, 30 defendants have been sentenced, with the majority being sentenced to prisons terms ranging from two to ten years, and three defendants sentenced between 15 to 25 years in prison.
These prosecutions are part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington D.C.; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation; Colonel Gary T. Settle, Superintendent of Virginia State Police; Steve R. Drew, Chief of Newport News Police; Terry L. Sult, Chief of Hampton Police Division; Col. K.L. Wright, Chief of Chesapeake Police; and Hampton Commonwealth’s Attorney Anton A. Bell made the announcement.
Assistant U.S. Attorneys Peter G. Osyf and Kevin Hudson and Special Assistant U.S. Attorney Amy E. Cross are prosecuting the case.
The following law enforcement agencies provided significant assistance during the investigation and arrest operation: U.S. Marshals Service, Newport News Sheriff’s Office, Chesapeake Sheriff’s Office, York-Poquoson Sheriff’s Office, Tennessee Highway Patrol, Amarillo Police, and Brunswick County Sheriff’s Office. Approximately 30 law enforcement agencies assisted in the arrest operation in Virginia, North Carolina, and Texas.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-47.
- Tangynika Johnson, 44, of Henderson, NC, assisted co-defendant Cory Bullock, an inmate in a West Virginia federal prison, in getting drug proceeds delivered to Ramirez-Barreto. Johnson pleaded guilty on January 29, 2021, to using a communication facility in furtherance of drug trafficking. She is scheduled to be sentenced on July 12, 2021, and faces a maximum penalty of four years in prison.
Shreveport Man Sentenced for Illegal Possession of FirearmRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that Lamarquez Harris, 25, of Shreveport, Louisiana, has been sentenced by United States District Judge Donald E. Walter to 60 months (5 years) in prison followed by 3 years of supervised release for being a convicted felon in possession of a firearm.
On May 4, 2019, Shreveport Police Department officers stopped Harris for a traffic violation. Officers observed a loaded semi-automatic handgun in plain view between the driver’s seat and the console. Harris, who has numerous previous felony convictions, admitted that he knew the gun was in the car and that he was prohibited from possessing any firearms. His prior convictions are for aggravated assault with a firearm (2014); attempted possession of a firearm (2015); and illegal possession of a stolen firearm (2017). Harris pleaded guilty to the charge on September 15, 2020.
The ATF and Shreveport Police Department conducted this investigation. Assistant U.S. Attorney Mike Shannon prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Shiprock man charged with assault with a dangerous weaponRead the Press Release
ALBUQUERQUE, N.M. – Quincee Zohnnie, 24, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, appeared in federal court on Jan. 28 on one count of assault with a dangerous weapon and one count of discharging a firearm during and in relation to a crime of violence. Zohnnie was ordered detained pending trial.
According to a criminal complaint, on or about June 14, 2020, Zohnnie allegedly drove by and fired gunshots into an occupied house, intending to cause harm to John Doe. There was a child in the home at the time of the shooting. The alleged incident occurred in San Juan County on the Navajo Nation.
If convicted, Zohnnie faces a minimum sentence of ten years and up to life in prison. A criminal complaint is only an allegation. A defendant is considered innocent unless and until proven guilty.
The FBI investigated this case with assistance from the Navajo Nation Department of Criminal Investigation. Assistant U.S. Attorney Allison C. Jaros is prosecuting the case.
Selma Resident Sentenced to 17 Years in Federal Prison for Armed Bank RobberyRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced today that United States District Judge Terry F. Moorer sentenced defendant Stanley Young, a/k/a “New York,” a/k/a “Shoota,” 32, of Selma, Alabama, to imprisonment for 17 years for committing an armed bank robbery. As part of the sentence, the judge ordered that Young undergo five years of supervised release, pay $47,423 in restitution, and pay a $200 mandatory special assessment.
On December 30, 2019, a federal grand jury for the Southern District of Alabama indicted Young and his two codefendants, Jabriel Bell and Fortune Hoppins, for robbing the bank and for brandishing a firearm during a crime of violence. Hoppins and Bell pleaded guilty to the bank robbery charge last July. The Court sentenced Hoppins and Bell each to 10 years in prison.
In October 2020, a trial jury convicted Young on both charges following a three-day trial.
The jury heard the evidence that in September of 2016, Young, Bell, and Hoppins robbed the West Alabama Bank & Trust, a federally insured bank in Marion, Alabama. The victim tellers testified that one robber, Bell, held them at gunpoint while another robber, Hoppins, stole money from the tellers’ drawers. Bell and Hoppins forced one of the tellers to go to the bank’s vault and ordered her to open it. All told, the robbers stole $46,923 from the bank.
Eyewitness testimony and expert analysis of historical cell-site records established that Young was the getaway driver. After the robbery, the defendants fled the crime scene, burned the getaway car, and moved to another car to continue their flight from Marion to Selma.
In November 2016, Young and Hoppins—fugitives from justice for the bank robbery—were arrested by the U.S. Marshals Service in Bridgeport, Connecticut on outstanding warrants from Perry County, Alabama. At the time of his arrest, agents found Young in possession of a backpack containing a stolen and fully loaded Glock Model 17 9mm pistol.
The jury also heard testimony about the burglary of a gun store in Safford, Alabama that occurred after Young and Hoppins had returned to Alabama in 2017. Young pleaded guilty in a separate federal case to stealing 50 guns with Hoppins and Bell in the Safford burglary. Young had been previously sentenced to 60 months in prison for that crime.
Furthermore, the jury heard evidence that Young attempted to tamper with two material witnesses while awaiting trial on the bank robbery charges. The evidence showed that Young used contraband phones at the jail to access Facebook and offered to pay other inmates $500 to assault one of the witnesses. The second witness was convinced by Young to plead guilty to a crime, lie to federal agents about Young’s involvement, and offer false testimony in court exonerating Young.
The FBI, the Fourth Judicial Drug Task Force, the Perry County Sheriff’s Office, the Marion Police Department, the Selma Police Department, and the Bridgeport, Connecticut Police Department investigated the case. Assistant United States Attorneys Sinan Kalayoglu and Justin Roller prosecuted the case.
Rosebud Man Indicted on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting In Serious Bodily Injury.
Mason Drew Reddy, age 25, was indicted on January 12, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 27, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 4, 2020, in Todd County, South Dakota, Reddy assaulted an individual with a sharp edged instrument with the intent to do bodily harm, and the assault resulted in serious bodily injury.
The charges are merely accusations and Reddy is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Reddy was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Prior Felon Arrested After Gun and Ammunition Are Found in His ResidenceRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Derrick A. Miller, 34, of Buffalo, NY, was arrested and charged by criminal complaint with being a felon in possession of a firearm and ammunition. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that according to the complaint, on August 20, 2020, the Buffalo Police Department and ATF executed a state search warrant at the defendant’s Deerfield Avenue residence. During the search, investigators recovered .22 caliber pistol loaded with 10 rounds of ammunition. In March 2008, Miller was convicted in Erie County Court of Criminal Possession of a Weapon and was sentenced to serve 42 months in prison. As a result, the defendant is legally prohibited from possessing a firearm.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and is being held pending a detention hearing.
The complaint is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Pennsylvania man charged with forcibly assaulting federal law enforcement officers in ClevelandRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced today that a federal grand jury sitting in Cleveland returned a three-count indictment charging Dewayne Taylor, age 31, of Harrisburg, PA, with forcibly assaulting, resisting, opposing, impeding or interfering with federal law enforcement officer; using, carrying, and brandishing a firearm during and in relation to a crime of violence; and being a felon in possession of a firearm.
According to court documents, on December 11, 2020, members of the United States Marshals Service (USMS) Northern Ohio Violent Fugitive Task Force (NOVFTF) were searching for the defendant due to an arrest warrant issued by the State of Pennsylvania Parole Authority. NOVFTF officers received information that the defendant was at a Walmart in the city of Cleveland and attempted to make an arrest. During the attempt, it is alleged that the defendant noticed the NOVFTF members, got into his vehicle, and pointed a firearm at one of the officers. In response, some of the NOVFTF members discharged their firearms, striking the defendant in the shoulder. The NOVFTF members rendered first aid until EMS arrived and transported the defendant to the hospital.
The defendant is prohibited from possessing a firearm due to previous convictions for conspiracy to commit burglary and burglary in the in Dauphin County Court of Common Pleas in the Commonwealth of Pennsylvania.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
The investigation was conducted by the United States Marshal’s Service Northern Ohio Violent Fugitive Task Force, the Cleveland Division of Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives and the matter is being prosecuted by Assistant United States Attorney Kelly L. Galvin.
Parmelee Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Parmelee, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Matthew M. Horned Eagle, Jr., age 31, was indicted on January 12, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 27, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 13, 2020, in Todd County, South Dakota, Horned Eagle did forcibly assault, oppose, impede, intimidate, and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services, and that such conduct involved physical contact. The Indictment further alleges that on November 27, 2020, Horned Eagle did forcibly assault, oppose, impede, intimidate, and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services, and that such conduct involved the use of a dangerous weapon.
The charges are merely accusations and Horned Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Horned Eagle was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Pamlico County Drug Dealer Sentenced to 100 MonthsRead the Press Release
RALEIGH, N.C. – A Pamlico County man was sentenced on Thursday, January 28, 2021, to 100 months in prison for the distribution of methamphetamine and cocaine.
According to court documents, Curtis Trevore Bell, 38, began selling methamphetamine and cocaine almost immediately after serving a ten-year sentence for murder. In a thirteen-month period, authorities purchased narcotics from Bell, a known member of the United Blood Nation, fourteen times. During the same time frame, U.S. Marshals removed Bell from a Federal courthouse in Elizabeth City when Bell appeared at a trial of a notorious drug dealer in New Bern to intimidate the Government’s witnesses.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. This case is part of an Organized Crime Drug Enforcement Task Force in the Eastern District of North Carolina focusing on narcotics distributors in Pamlico County. The Pamlico County Sheriff’s Office, North Carolina State Bureau of Investigation, Homeland Security Investigation, the Drug Enforcement Administration and the District Attorney's Office in Prosecutorial District 4 assisted with the investigation of the case and Assistant U.S. Attorney J.D. Koesters prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:20-cr-00043-BO.
Ontario Man Agrees to Plead Guilty to Federal Charges of Illegally Operating Bitcoin-Cash Exchange Business and Money LaunderingRead the Press Release
LOS ANGELES – A San Bernardino County man was charged today with running an unlicensed company that exchanged tens of millions of dollars in Bitcoin and cash.
Hugo Sergio Mejia, 49, of Ontario, was charged in a two-count information with operating an unlicensed money transmitting business and money laundering. In a plea agreement also filed today, Mejia agreed to plead guilty to these felony offenses. Mejia is expected to plead guilty to the information in United States District Court in March.
According to his plea agreement, from May 2018 to September 2020, Mejia operated a virtual currency business that exchanged Bitcoin for cash, and vice versa, charging commissions for these transactions. Mejia admitted he never registered his business with the Financial Crimes Enforcement Network, a bureau with the United States Department of the Treasury that collects and analyzes information to combat financial crimes, including money laundering.
During the nearly 2½-year period, according to the plea agreement, Mejia exchanged at least $13 million.
Mejia also admitted he established companies to mask his true activity, including Worldwide Secure Communications LLC, World Secure Data, and The HODL Group LLC. Mejia advertised his business online and was referred to customers by word of mouth, communicating with them via encrypted messaging services, and meeting them in person at coffee shops, the plea agreement states.
On several occasions between May 2019 and March 2020, Mejia met with a client, who was working with law enforcement, to exchange Bitcoin for tens of thousands of dollars in cash, according to the plea agreement. On March 12, 2020, Mejia met with the client at a coffee shop in Irvine and facilitated the exchange of 14.273 Bitcoin for $82,150 in cash plus fees. During this meeting, the client informed Mejia that his primary customer was a methamphetamine buyer in Australia who purchased methamphetamine every four to six weeks and sold it in Australia for five times more than the average price in the United States, according to the plea agreement.
Mejia and the client who was working with law enforcement conducted five Bitcoin-cash transactions that cumulatively exceeded $250,000, the plea agreement states.
Mejia further agreed to forfeit all assets derived from the illegal conduct, including $233,987 in cash seized from residences in Santa Ana and Ontario, silver coins and bars, and approximately $95,587 in various cryptocurrency seized.
Once he pleads guilty to the two counts in the information, Mejia will face a statutory maximum sentence of 25 years in federal prison.
This matter was investigated by IRS Criminal Investigation and Homeland Security Investigations, which received assistance from the Costa Mesa Police Department.
This case is being prosecuted by Assistant United States Attorneys Puneet V. Kakkar and Brittney M. Harris of the International Narcotics, Money Laundering, and Racketeering Section. Assistant United States Attorney Brent A. Whittlesey of the Asset Forfeiture Section is handling the forfeiture aspect of the case.
New Windsor Tax Preparer Sentenced in White Plains Federal Court to 6 Months in Prison for Filing False Tax ReturnsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that EVERSLEY BARRETT, a tax preparer and owner of a tax preparation business named Eversley Tax, in New Windsor, New York, was sentenced yesterday in White Plains federal court to six months in prison after previously pleading guilty to 16 counts of an 84-count Indictment. The Indictment charged him with preparing false and fraudulent individual income tax returns for his clients and himself, and tax evasion. BARRETT was sentenced by United States District Judge Vincent Briccetti.
U.S. Attorney Strauss said: “Eversley Barrett abused his position of trust as a tax preparer by filing false tax returns on behalf of his clients and himself. He caused over half a million dollars in losses to the IRS, all for his own unjust enrichment. Mr. Barrett’s sentence sends a message that dishonest practices by tax preparers will be justly punished.”
In imposing sentence, Judge Briccetti observed that a term of imprisonment was important because of the seriousness of BARRETT’s crimes and the need to promote deterrence in tax cases.
BARRETT included, among other things, tens of thousands of dollars of false and fraudulent deductions for business expenses and gifts to charity on tax returns he prepared for himself and his clients. BARRETT also failed to report on his own personal tax returns over $300,000 in receipts that he received for his tax preparation services from 2012 through 2015.
As confirmed by IRS audits as well as BARRETT’s admissions at his guilty plea hearing, BARRETT’s crimes resulted in a loss to the IRS of more than $500,000.
In addition to the prison term, BARRETT was also sentenced to three years of supervised release, including an obligation to pay the IRS over $573,000 in back taxes, interest and penalties.
Ms. Strauss praised the investigative work of the Internal Revenue Service, Criminal Investigation, and thanked the IRS for its assistance.
This matter is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Margery Feinzig is in charge of the prosecution.
Nebraska Man Sentenced to 235 Months in PrisonRead the Press Release
FORT WAYNE—Tracy Lloyd, 48, of Omaha, Nebraska, was sentenced before United States District Court Judge Holly A. Brady upon his plea of guilty to two counts of Robbery Affecting Interstate Commerce and one count of Armed Bank Robbery, announced Acting United States Attorney Gary T. Bell.
Mr. Lloyd was sentenced to 235 months in prison, followed by 3 years of supervised release. He was also ordered to pay restitution in the amount of $1,087.00.
According to documents filed in the case, Mr. Lloyd robbed Family Dollar on January 11, 2017; First Source bank on June 13, 2017; and a Hampton Inn hotel on June 17, 2017. Mr. Lloyd has agreed to pay restitution for these robberies and four other robberies committed by him.
This case was investigated by the Federal Bureau of Investigation, Fort Wayne Police Department, New Haven Police Department, and the Indianapolis Metropolitan Police Department.
pThis case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
NOPD Detective and NOPD Police Officer Among Seven Indicted for Stealing More Than $100,000 from the United States Army by Claiming Reimbursement for Military Funeral Honors Ceremonies That Never OccurredRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced on Friday a seven-count indictment charging New Orleans Police Detective CHANTELLE DAVIS, New Orleans Police Officer LYNEA SANDERS, and five other former United States Army reservists with stealing more than $100,000 from the United States Department of the Army by claiming reimbursement for the performance of military funeral honors ceremonies that never happened.
The National Defense Authorization Act of 2000 authorizes military funeral honors for active duty soldiers, retirees, and veterans. At a family’s request, eligible persons can receive military funeral honors, including the folding and presenting of the United States flag and the playing of “Taps.”
According to today’s indictment, CHRISTOPHER O’CONNOR, a former Army pay technician, submitted fraudulent reimbursement requests for military funeral honors that O’CONNOR, CHANTELLE DAVIS, LYNEA SANDERS, LEROY DANIELS, Jr., DERRICK BRANCH, CODY FRANCIS, and TERRANCE HOWARD allegedly performed but had not.
According to the indictment, O’CONNOR, age 40, stole approximately $18,825.83 in Department of the Army funds, BRANCH, age 36, stole approximately $15,469.30, DANIELS, age 45, stole approximately $11,693.87, DAVIS, age 35, stole approximately $8,399.65, FRANCIS, age 31, stole approximately $11,378.27, HOWARD, age 54, stole approximately $13,585.92, and SANDERS, age 41, stole approximately $22,505.35. All the defendants are former Army reservists in the 377th Theater Sustainment Command, New Orleans. Each is a resident of New Orleans other than DANIELS who lives in Westwego, LA.
If convicted of conspiring to commit theft of government funds, in violation of Title 18, United States Code, Section 371, and theft of government funds, in violation of Title 18, United States Code, Section 641, each defendant faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment. The United States is seeking full restitution of all the stolen money, approximately $101,858.19.
U. S. Attorney Strasser reiterated that an Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Army Criminal Investigation Command, including Special Agents John Hiniker, Jeffrey Riedeman, and Denny Richter. Assistant United States Attorney David Howard Sinkman is in charge of the prosecution.
NDTX Round-Up: January 22-28Read the Press Release
GUILTY PLEA – KALYA EVETTE ODOM
On January 21, Kayla Evette Odom, 46, plead guilty to wire fraud. Odom is the former director of human resources for a business in the Northern District of Texas. As part of her duties, Odom was responsible for reviewing and approving invoices for human resources services. Odom set up a human resources vendor business, owned and controlled by herself, in her company’s accounts payable system. She created and submitted approximately 38 fraudulent invoices for various human resources services. Odom faces up to 20 years in federal prison for her crimes. This case was investigated by the FBI. Assistant U.S. Attorney Renee Hunter is prosecuting the case.
GUILTY PLEA – LUIS HUMBERTO RODRIGUEZ
On January 26, Luis Humberto Rodriguez, 28, plead guilty to production of child pornography and transportation of child pornography. HSI executed a search warrant at a residence in Olympia, Washington in connection to the distribution of child pornography. During analysis of the seized devices, law enforcement uncovered a social media account linked to Rodriguez in which he shared child pornography. Based on this information, HSI agents executed a search warrant at Rodriguez’s Dallas home. Rodriguez advised agents that he was in possession of a 20 gigabytes of child pornography. He further admitted to sexually abusing a 7-year-old on multiple occasions. Rodriguez faces up to 50 years in federal prison for his crimes. This case was investigated by HSI. Assistant U.S. Attorney Camille Sparks is prosecuting the case.
GUILTY PLEA – TAMMY LOUISE CRAWFORD
On January 26, Tammy Louise Crawford, 51, plead guilty to possession with the intent to distribute a controlled substance. Crawford possessed methamphetamine at her residence in Dallas, Texas. For protecting her drug business, she also possessed eight firearms. Crawford faces up to 20 years in federal prison for her crimes. This case was investigated by the Texas Department of Public Safety and Dallas Police Department. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
GUILTY PLEA – ARMANDO RAMIREZ-HERNANDEZ
On January 26, Armando Ramirez-Hernandez, 27, plead guilty to distribution of a visual depiction of a minor engaged in sexually explicit conduct. Law enforcement executed a search warrant at Ramirez-Hernandez’s residence in Seagoville, Texas in relation to a child pornography investigation. A number of digital devices were seized inside the home including two cell phones and a computer. A forensic examination of the devices revealed the presence of social media chat communications. Ramirez-Hernandez admitted to transmitting several image files containing child pornography. At the time he distributed the child pornography, he also possessed 2,786 images and videos of child pornography. Ramirez-Hernandez faces up to 20 years in federal prison for his crimes. This case was investigated by HSI. Assistant U.S. Attorney Damien Diggs is prosecuting the case.
Mississippi Man Sentenced to 11 Years for Cocaine and Money Laundering ConspiraciesRead the Press Release
Another member of a multi-state drug ring will be spending the rest of the decade behind
bars. Lendarious Hayes, 24, of Meridian, Mississippi, has been sentenced to 135 months (11 years
and 3 months) in federal prison for conspiracy to distribute cocaine and money laundering
conspiracy. Hayes (a.k.a. “Lil Daddy”) was one of 13 defendants named in a 13-count third
superseding indictment returned by an East St. Louis grand jury in October 2019. One year later,
he pled guilty to the two charges in which he was named.
The charged conspiracy to distribute cocaine took place from 2014 through 2018 and
involved the distribution of cocaine between East St. Louis, Illinois; Houston, Texas; Memphis,
Tennessee; Jackson, Mississippi; and other locations. In furtherance of the conspiracy, Hayes
personally distributed at least 32 kilograms of cocaine throughout the country. Other couriers
assisted in the distribution of cocaine for the same organization, totaling at least 360 kilograms of
cocaine. Hayes was also charged with participating in a money laundering conspiracy, in which
he directed the deposit and withdrawal of thousands of dollars of drug proceeds into a coconspirator’s
bank account, in order to disguise the nature of those funds.
The case against Hayes began in February 2019, when an earlier indictment charged him
with just one count of participating in the cocaine distribution conspiracy. While out on bond,
Hayes subsequently traveled without court permission to Houston, Texas, and later Lafayette,
Louisiana, where he was arrested and charged with possession of a controlled substance in October
2019. Later that month, the money laundering conspiracy charge was added. Hayes was eventually
brought back to the district by the U.S. Marshals Service in March 2020 and has been in federal
custody ever since.
Hayes was just one of 13 defendants named in the third superseding indictment. Many of
his co-defendants were also charged with distributing “ice,” which is a highly pure form of
methamphetamine. Eight co-defendants have already pleaded guilty, with four of them receiving
prison sentences of more than 10 years.
Members of the public are reminded that an indictment is merely an accusation, and all
defendants are presumed innocent until proven guilty beyond a reasonable doubt.
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When his prison sentence is finished, Hayes will serve a 5-year term of supervised release.
He was also ordered to pay a $200 fine.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF)
investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers,
money launderers, gangs, and transnational criminal organizations that threaten the United States
by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths
of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the Drug Enforcement Administration, the Internal Revenue
Service, the United States Postal Inspection Service, the Illinois State Police, and other law
enforcement agencies.
Mexican woman arrested for harboring aliens in LaredoRead the Press Release
LAREDO, Texas – A 43-year-old Mexican national who illegally resided in Laredo has been charged with harboring undocumented aliens at her residence and conspiracy to do so, announced U.S. Attorney Ryan K. Patrick.
Maria San Juana de Hoyos is set to make her initial appearance before U.S. Magistrate Judge Diana Song Quiroga at 1:30 p.m. today. Law enforcement took her into custody Jan. 27.
The criminal complaint alleges that authorities had believed de Hoyos was operating a stash house for undocumented aliens at her residence on the 3800 block of Alexandra Court in Laredo.
Law enforcement later conducted a search and found 10 individuals hiding inside the residence, according to the charges. The investigation revealed all were Mexican nationals illegally present in the United States.
If convicted, de Hoyos faces up to 20 years in federal prison.
Immigration and Customs Enforcement Homeland Security Investigations, Border Patrol and Webb County Constable’s Office conducted the investigation.
Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
McFarland Man Sentenced to over 3 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — Eduardo Leon, 30, of McFarland, was sentenced today by U.S. District Judge Dale A. Drozd to three years and four months in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
On June 26, 2019, Leon, a convicted felon prohibited by law from possessing a firearm, possessed four machine gun conversion devices, which he had previously ordered online. Machine gun conversion devices are designed to convert semi‑automatic pistols to fire in fully automatic mode and are illegal in the United States.
This case was the product of an investigation by the Customs and Border Patrol and Homeland Security Investigations. Assistant U.S. Attorney Jessica A. Massey prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Martin County Resident Detained on Charges of Child ExploitationRead the Press Release
Miami, Florida – Today, Nikolas Cook, 22, of Stuart, Florida, appeared in federal court and was ordered detained pending trial on charges of using a three-year old girl to produce child pornography and then distributing the images in an internet chat room. Cook is also charged with possessing of child pornography.
According to the allegations in the criminal complaint affidavit, on September 10, 2020, Cook was in a social media chat room used by individuals interested in child sexual abuse material. While participating in the group chat, Cook, while using a pseudonym, distributed multiple pornographic images of a three-year-old girl. FBI learned of the activity and investigated. Within hours, FBI determined Cook’s real identity and residential address and arrested him. During a search of Cook’s residence, agents located a cell phone containing multiple sexually explicit images and videos of minor children being sexually abused.
During a hearing today in federal magistrate court in Ft. Pierce, Cooke was ordered detained pending trial. His arraignment date is set for February 12.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami Field Office, made the announcement.
FBI Miami investigated this case, with assistance from the Martin County Sheriff’s Office. Assistant U.S. Attorney Daniel E. Funk is prosecuting the case.
A criminal complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-058-SMM.
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Manchester Man Pleads Guilty to Possession of a Firearm and Ammunition by a Convicted FelonRead the Press Release
CONCORD - Joseph Taylor, 31, of Manchester, pleaded guilty in federal court on Thursday to possession of a firearm and ammunition by a convicted felon, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on March 9, 2020, Manchester police officers stopped a car operated by Taylor after observing suspected drug activity and a motor vehicle violation. Taylor agreed to speak with the detectives outside the car. The detectives asked Taylor if he had anything illegal on him and he said he did not. After he consented to a search of his person and car, detectives found over $1,800 and a loaded 9mm handgun hidden in an area behind the glove compartment. Detectives later learned the firearm was stolen.
Taylor admitted he was a convicted felon and that he had the firearm for protection. He explained it was hidden because he knew he could not possess a firearm as a convicted felon.
Taylor is scheduled to be sentenced on May 5, 2021.
“In order to reduce crime and maintain public safety, federal law prohibits convicted felons from possessing firearms,” said U.S. Attorney Murray. “Through Project Safe Neighborhoods, we are working with our law enforcement partners to identify armed criminals and bring them to justice in federal court.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Man from La Mesa charged with derailing train in southern New MexicoRead the Press Release
ALBUQUERQUE, N.M. – Luis Angel Rodriguez, 27, of La Mesa, New Mexico, made his initial appearance in federal court today where he was charged with knowingly derailing a train. Rodriguez will remain detained pending a preliminary hearing.
According to a criminal complaint, in the early morning hours of Dec. 2, 2020, Rodriguez allegedly placed materials on a track causing a BNSF Railway train to derail in Vado, New Mexico. The derailment injured the conductor and engineer and caused damage to the railway and surrounding property.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Rodriguez faces up to life in prison.
The FBI investigated this case in conjunction with BNSF Police and the Doña Ana County Sheriff’s Office. Assistant U.S. Attorney Mark Saltman is prosecuting the case.
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Man Charged for Bilking Employer Out of $1.6 MillionRead the Press Release
A Plano man has been charged with racking up $1.6 million dollars in personal expenses on company credit cards, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
On Tuesday, Steven Duety, 45, was indicted on one count of conspiracy to commit wire fraud and nine counts of wire fraud. He made his initial appearance before U.S. Magistrate Judge Rebecca Rutherford on Friday.
“It is unacceptable for an employee to steal from his employer,” said Acting U.S. Attorney Prerak Shah. “This defendant’s alleged abuse of his company credit card is wire fraud and the Northern District of Texas will not stand for this sort of misconduct.”
“Mr. Duety was in a position that required trust and integrity and his alleged actions abused his position,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The FBI will continue to work closely with our law enforcement partners to hold those who enrich themselves via fraudulent schemes accountable for their actions.”
According to the indictment, from 2015 to 2019, Mr. Duety oversaw fleet functions for Builders FirstSource, a publicly-traded construction products manufacturer. The company gave him access to several company credit cards, which he was supposed to use for fleet-related expenses, such as titling, renewing registration, etc.
Instead, Mr. Duety allegedly conspired with a relative, identified in court documents as “Person A,” to use the credit cards for personal expenses as well as inventory for their respective candle businesses, including “Steves The Man Candles.”
Mr. Duety frequently charged company credit cards for nonexistent transactions via Square or Intuit, causing the payment processors to remit money from Builders FirstSource straight into his or Person A’s bank account. He and his coconspirators sometimes characterized these transactions as “car repair” or “fundraiser,” when no such things had occurred.
Mr. Duety allegedly spent the money on cars, dining (including expensive steakhouses), first class airline tickets, luxury hotels, car rentals, furniture, Amazon charges, toys, groceries, landscaping, a Netflix subscription, laser tag, and trips to Hooters, as well as first class airline tickets and kitchen appliances for Person A.
“This is really a pain in the butt,” Person A wrote in an email to Mr. Duety on October 18, 2016. “My story is you bought 100 fundraiser candles in case they call you.”
An indictment is merely an allegation of criminal wrongdoing, not evidence. Like all defendants, Mr. Duety is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 200 years, 20 years per count, in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Andrew Wirmani is prosecuting the case.
Man Accused of Kidnapping Ex-girlfriend and her parents Charged in South Florida Federal CourtRead the Press Release
Miami, Fl. – Today, federal prosecutors in Ft. Lauderdale filed a criminal complaint charging a 37-year-old West Palm Beach man with kidnapping his ex-girlfriend and her parents at gunpoint from their Pembroke Pines home earlier this month.
The criminal complaint affidavit alleges the following against Jaddier Thomas Sanchez: Around midnight on January 17, 2020, as the parents of Sanchez’s ex-girlfriend arrived in their truck at their Pembroke Pines home and attempted to go inside, Sanchez appeared with a gun in his hand. Sanchez grabbed the mother by the hair, forced the father into the driver’s seat of their truck, and forced the mother into the bank seat, where Sanchez sat beside her, says the affidavit. With firearm in hand, Sanchez forced the father to drive to several local ATM machines and withdraw thousands of dollars from the couples’ bank accounts. Then, Sanchez directed the couple to drive back to their house for their daughter, whom the defendant had earlier dated for about a month. As with the parents, Sanchez forced his ex-girlfriend into the truck, according to the affidavit. They drove north for several hours, at Sanchez’ direction. Once they reached Belle Glade, Florida, Sanchez left the parents on the side of a road, with their hands and feet bound. Sanchez continued to drive across Florida with the ex-girlfriend, whom he repeatedly hit in the face and threatened to kill, according to the affidavit. On January 18, 2020, police in Alexandria, Virginia stopped the vehicle with Sanchez and the victim inside. Police arrested Sanchez. He has been in law enforcement custody since then.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami Field Office, made the announcement.
FBI Miami and its Violent Crimes Task Force investigated the case with assistance from FBI Washington Field Office, Pembroke Pines Police Department, Palm Beach County Sheriff’s Office, Virginia State Police, and Fairfax County Police Department. Assistant U.S. Attorneys Brooke Latta and Francis Viamontes are prosecuting this federal case. Sanchez also faces state charges in Virginia and Florida.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. If convicted in this federal kidnapping case, Sanchez faces a maximum penalty of life imprisonment.
You may find related court documents on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 21-MJ-6046.
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Malden Man Charged with Murder-for-HireRead the Press Release
BOSTON – A Malden man was arrested today and charged in connection with attempting to hire a contract killer – who was actually an undercover federal agent – to murder his wife.
Massimo Marenghi, 54, was charged by criminal complaint with one count of murder-for-hire. Marenghi will make an initial appearance in federal court in Boston via videoconference on Monday, Feb. 1 at 11:30.
According to a criminal complaint, an individual reported to law enforcement that Marenghi had complained about his wife seeking a restraining order against him. Marenghi allegedly asked the individual for assistance in killing his wife. At the direction of federal agents, the individual introduced Marenghi to an undercover agent who posed as a contract killer. On Jan. 20, 2021, Marenghi met with the undercover agent and allegedly sought help to “eliminate” his problem. Marenghi provided the undercover agent with a photograph of his wife’s residence and explained how to evade detection by cameras while approaching the residence.
It is alleged that earlier today, Marenghi again met with the undercover agent and discussed moving forward with the killing of his wife. Marenghi provided $1,500 cash as a deposit for the murder and explained that the sooner the “demolition job” takes place, the sooner he will be able to pay the balance owed. He also allegedly provided the undercover agent with a photograph of his wife, the hours of operation of her place of business and a schedule indicating the “best time for the construction work to start.”
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The Malden Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney Adam Deitch of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maine Man Pleads Guilty to Drug Trafficking, Firearm, and Fraud OffensesRead the Press Release
CONCORD - Richard Stanton, 34, of Hope, Maine pleaded guilty in federal court on Thursday to multiple charges, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on March 18, 2019, New Hampshire State Troopers stopped a vehicle with a defective taillight. The driver, Stanton, was seen reaching under the front passenger seat as they approached. Due to safety concerns, a trooper asked Stanton to exit and walk to the rear of the vehicle. Stanton initially provided false information about his identity to the officers. Officers later determined his actual identity. He was arrested after officers determined that he had a suspended driver’s license and that he was the subject of outstanding warrants in Maine
Stanton told the officers there was no one to pick up the vehicle roadside. Per their policy, the officers started to inventory the vehicle in anticipation of it being towed. Various drug paraphernalia was located during the search. Additionally, the officers observed an unlocked gun case in the rear seat containing a rifle and several rounds of ammunition. Officers then stopped the search to apply for a search warrant. The following day, pursuant to the search warrant, the vehicle was searched and officers discovered Stanton’s wallet hidden in a compartment along with over 118 grams of heroin secreted in the dashboard. As a previously-convicted felon, Stanton is prohibited from possessing firearms and ammunition.
On July 24, 2019, Stanton, an uninsured individual, checked into a medical center in Bangor, Maine. Stanton signed a consent to treatment form using another individual’s identity who was a lawful recipient of Maine Care benefits. Stanton received care and generated medical bills to be processed in the other individual’s name.
Stanton pleaded guilty to possession of heroin with intent to distribute, possession of a firearm and ammunition by a prohibited person, and making a false statement in connection with health care benefits.
Stanton is scheduled to be sentenced on March 19, 2021.
“Drug traffickers are involved in a risky business and often arm themselves for protection,” said U.S. Attorney Murray. “The result is that they pose a greater danger to the public. Working with our law enforcement partners we will prosecute drug traffickers and keep guns out of the hands of criminals. This defendant’s illegal activities jeopardized public health and safety and led to a well-deserved federal prosecution.”
This matter was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Office of the Inspector General of the U.S. Department of Health and Human Services with assistance from the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Lame Deer man admits assaulting womanRead the Press Release
BILLINGS — A Lame Deer man on Jan. 28 admitted to assaulting a woman on the Northern Cheyenne Indian Reservation, Acting U.S. Attorney Leif Johnson said today.
Darrell Dean Fisher, 36, pleaded guilty to assault resulting in substantial bodily injury. Fisher faces a maximum five years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Fisher was released pending further proceedings. A sentencing date has not yet been set.
In court documents filed in the case, the prosecution said that on Aug. 4, 2019, Fisher and the victim, identified as Jane Doe, returned to Ashland from a trip and argued. An altercation ensued and Fisher pushed the victim to the ground, injuring her.
Assistant U.S. Attorney Bryan Dake is prosecuting the case, which was investigated by the FBI.
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Justice Department and EPA Announce Settlement with Stericycle Inc. to Address Environmental Violations at Medical Waste IncineratorRead the Press Release
The Justice Department and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Illinois-based Stericycle Inc. resolving alleged violations of the federal Clean Air Act and Utah air quality regulations at its medical waste incinerator in North Salt Lake, Utah.
The settlement, set forth in a consent decree lodged with the U.S. District Court for the District of Utah, requires Stericycle to comply with EPA regulations applicable to medical waste incinerators, pay a $600,000 civil penalty, and conduct a Supplemental Environmental Project requiring the company to spend at least $2 million to purchase low- emitting school buses for a local school district.
Today’s settlement resolves violations alleged in the United States’ complaint, which was also filed today. The complaint alleges that Stericycle operated its waste incinerator in a manner that exceeded regulatory limits for nitrogen oxides (NOx), failed to properly conduct stack tests, and failed to comply with reporting requirements. EPA investigated the alleged violations in cooperation with the Utah Division of Air Quality, which concluded its own action for related violations several years ago.
“Medical waste incinerators must operate in strict compliance with our nation’s clean air laws,” said Jean E. Williams, Deputy Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Stericycle has installed new pollution controls and made operational changes to remedy the violations alleged in the complaint.”
“This settlement will benefit all who live in and visit North Salt Lake,” said EPA Acting Regional Administrator Debra H. Thomas. “In addition to NOx reductions at the facility, the settlement requires Stericycle to replace old, high-emitting school buses for a local school district, providing cleaner air for school children and nearby neighborhoods.”
The school bus replacement is a Supplemental Environmental Project, or SEP, which is an environmentally beneficial project required in a settlement that is not otherwise required by law. Diesel emissions reduction SEPs have been expressly authorized by Congress. EPA expects the SEP in this case will replace as many as 20 buses, leading to significant reductions in NOx, carbon monoxide, and diesel particulate matter and substantial fuel savings.
NOx is a key component in the formation of ground-level ozone, a pollutant that irritates lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis.
The consent decree is subject to a 30-day public comment period and final court approval. To view a copy of the consent decree and for information on how to submit a comment, visit www.justice.gov/enrd/Consent_Decrees.html.
Justice Department Seeks to Shut Down Louisiana Tax Return PreparersRead the Press Release
The United States has filed a complaint seeking to bar Louisiana tax return preparers from owning or operating a tax return preparation business and preparing tax returns for others, the Justice Department announced today.
The civil complaint against Leroi Gorman Jackson and Mario Alexander, both individually and doing business as The Taxman Financial Services LLC, was filed in the U.S. District Court for the Eastern District of Louisiana. The complaint alleges that Jackson formed The Taxman Financial Services in 2013 and manages its six offices across Louisiana and Texas, and that Alexander started working there as a tax preparer in 2016. According to the complaint, in October 2019, the Civil District Court for the Parish of Orleans permanently enjoined Jackson from working as a Louisiana tax preparer.
The complaint alleges that Jackson and Alexander prepared tax returns claiming fabricated business expenses, as well as claiming various false tax deductions and credits, including charitable contributions and education credits. It also alleges that defendants fabricated business income and/or expenses in order to increase claims for earned income tax credits (because of the way the EITC is calculated, reporting more income can, up to a point, result in a larger refundable credit; similarly, claiming losses to offset higher income, thereby decreasing total reported income, can also generate a larger refundable credit). According to the complaint, Jackson and Alexander significantly underreported their customers’ tax liabilities, obtained fraudulent tax refunds, and charged exorbitant fees for their services, often without their customers’ knowledge.
The government further alleges in the complaint that defendants have filed over 12,400 tax returns since the 2017 filing season, and that they have filed tax returns using other tax preparers’ personal identifying information. The complaint alleges that Alexander, at least, has done so in order to avoid an IRS investigation as to whether he has complied with due diligence requirements that obligate a tax return preparer to make reasonable inquiries to ensure that a customer is legitimately entitled to various tax credits, including the earned income tax credit. According to the complaint, Alexander is subject to and has not paid penalties incurred for past violations of these due diligence requirements.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant (more information can also be found here). The IRS has information on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Department of Justice’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Recognizes the 10th Annual Human Trafficking Prevention MonthRead the Press Release
The Department of Justice today commemorates the 10th annual National Slavery and Human Trafficking Prevention Month and declares a continued commitment to combatting human trafficking in all its forms. The fight against human trafficking remains one of the department’s highest priorities, and the department will remain relentless in its efforts to bring traffickers to justice and seek justice for survivors.
Human trafficking is a crime that preys on some of the most vulnerable members of our society. It is a crime of exploitation that deprives victims of their rights, freedom, and dignity. Traffickers exploit the vulnerable through forced labor or commercial sex involving children or involving adults subjected to force, fraud, or coercion.
“The Department of Justice is unflagging in its resolve to eradicate human trafficking and pursue justice for those affected by these heinous crimes,” said Acting Attorney General Monty Wilkinson.
The Department of Justice is committed to continuing its victim-centered, trauma-informed approach to detecting hidden human trafficking crimes, holding perpetrators accountable, and restoring the lives of survivors, while strengthening strategic anti-trafficking partnerships. In fiscal year 2020, the department brought 210 federal human trafficking cases against 337 defendants, and secured 309 convictions.
Already in 2021, the department secured a sentence of life imprisonment for an individual in Florida who directed, primarily through online communications and transactions, the sex trafficking of impoverished young children in the Philippines. As a result, Filipino authorities were able to rescue six child victims from the defendant’s co-conspirator in the Philippines. Also in 2021, the department successfully convicted a labor trafficker who used debts, threats, abuse, and assaults to compel the victim’s unpaid labor for 10 hours a day, six to seven days a week, in the defendant’s North Carolina nail salon. The department also secured a life sentence and over $900,000 in restitution against a Texas sex trafficker who compelled women and girls to engage in commercial sex through violence, isolation, intimidation, and threats.
The department-wide approach to combating human trafficking extends beyond the prosecutions brought by U.S. Attorneys’ Offices, the Human Trafficking Prosecution Unit, and the Child Exploitation and Obscenity Section, to include interagency enforcement initiatives and strategic partnerships with global anti-trafficking allies. These efforts increasingly utilize specialized expertise in money laundering, financial crimes, and transnational organized crime to enhance investigations and prosecutions.
The FBI’s Crimes Against Children and Human Trafficking Unit develops innovative strategies on an ongoing basis to enhance detection and investigation of hidden human trafficking crimes. The Justice Department’s Office for Victims of Crime, as the largest federal funding source for trafficking victim services, issued over 400 grants totaling over $270 million, enabling its grantees to serve 9,854 clients. In addition, the Office for Victims of Crime launched its Human Trafficking Capacity Building Center to assist local and tribal organizations in starting, sustaining, and expanding their anti-trafficking efforts. The department continues to to elevate the voices of courageous survivors, ensuring that their expertise and insights inform anti-trafficking efforts.
During this, the 10th annual National Slavery and Human Trafficking Prevention Month, the Department of Justice reaffirms its commitment to combatting the heinous crime of human trafficking, holding perpetrators accountable, and seeking justice for survivors.
Inglewood Man Arrested on Federal Charges of Possessing Distribution Quantities of PCPRead the Press Release
LOS ANGELES – Federal authorities have arrested an Inglewood man on a federal narcotics trafficking charge following an investigation that determined he ordered bulk quantities of at least one chemical used to make PCP and a search that led to the discovery over 2 kilograms of the drug, the Justice Department announced today.
William Cless Hubbard Jr., 63, was arrested Thursday evening by special agents with the Drug Enforcement Administration. Federal prosecutors this morning filed a criminal complaint against Hubbard charging him with possession with intent to distribute phencyclidine (PCP).
At his first court appearance late this afternoon in United States District Court, Hubbard was ordered detained pending trial. An arraignment in this case was scheduled on February 18.
During a search at Hubbard’s residence on Thursday, authorities recovered a one-gallon jug containing amber liquid which tested presumptively positive for PCP, according to the affidavit in support of the complaint. During a related search at a business owned by Hubbard, law enforcement found 55-gallon drums containing precursor chemicals regulated under the Controlled Substances Act that can be used to manufacture PCP.
The investigation into Hubbard began in October 2019 when authorities learned of a shipment of four drums of bromobenzene from China to a beauty supply company that Hubbard owned, the affidavit states. Bromobenzene has a number of applications, including being used in the manufacturing of PCP.
After the bromobenzene was delivered to his business on West Manchester Boulevard in South Los Angeles in December 2019, Hubbard was under surveillance by law enforcement. On several occasions in 2020, authorities observed Hubbard distributing suspected chemicals to several locations, including a building in Long Beach where a clandestine PCP lab was discovered last May.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of the narcotics charge alleged in the complaint, Hubbard would face a statutory maximum sentence of life in federal prison.
This matter was investigated by the Drug Enforcement Administration, U.S. Customs and Border Protection and L.A. IMPACT (the Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force).
This case is being prosecuted by Assistant United States Attorney JohnPaul LeCedre of the General Crimes Section.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Jan. 26 was:
Elijah James Rideshorse, 30, of Billings on charges of conspiracy to distribute and possession with intent to distribute methamphetamine, possession with intent to distribute meth and felon in possession of a firearm. If convicted of the most serious crime, Rideshorse faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Rideshorse was detained pending further proceedings. The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Billings Police Department, Montana Highway Patrol, Blackfeet Law Enforcement Services, Glacier County Sheriff’s Office and Cut Bank Police Department investigated the case.
PACER case reference. 20-87.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Individual Indicted for Possession of A MachinegunRead the Press Release
SAN JUAN, Puerto Rico – On January 27, 2021, a federal grand jury returned a one-count indictment charging Nelson Grau-Cruz with possession of a machinegun, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with the collaboration of the San Juan Municipal Police (SJMP) are in charge of the investigation of the case.
On January 20, 2021, officers from the SJMP were conducting a preventive patrol in San Juan, P.R. and conducted a traffic stop on a Mitsubishi Lancer. The driver, later identified as Nelson Grau-Cruz, stopped the Lancer. During the traffic stop, the officer observed a black pistol magazine protruding from a bag in the car. After additional interactions that led police to understand that there was an illegal firearm in the car, the defendant was placed under arrest and the officers seized from the car one Glock pistol and six magazines. The firearm had a modification that allowed it to automatically shoot, without manual reloading, more than one shot by a single function of the trigger, thereby classifying it as a machinegun.
Assistant U.S. Attorney Luis A. Valentin and Jonathan L. Gottfried, Chief of the Violent Crimes and National Security Section, are in charge of the prosecution of the case. If convicted, the defendant faces up to 10 years in prison.
An indictment contains only charges and is not evidence of guilt. The defendant is presumed to be innocent unless and until proven guilty.
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Indian Trail Man Pleads Guilty to Wire Fraud for Scheme to Defraud COVID-19 Unemployment Insurance Benefit ProgramRead the Press Release
CHARLOTTE, N.C. – Joseph Ransome, 51, of Indian Trail, N.C., pleaded guilty to wire fraud today, for defrauding the COVID-19 Unemployment Insurance (UI) benefit program, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. Attorney Murray in making today’s announcement.
The Coronavirus Aid, Relief and Economic Security (CARES) Act is a federal law enacted March 29, 2020, designed to provide emergency financial assistance, including expanded UI benefits, to millions of Americans suffering the economic effects of the COVID-19 pandemic.
According to plea documents and statements made in court, from March 2020 through July 2020, Ransome received UI benefits to which he was not entitled. Court documents show that Ransome applied for fraudulent UI benefits in multiple states, including in North Carolina, New Jersey, New York, and elsewhere. Ransome filed for the UI benefits based on fraudulent claims, including non-existent employment and false reason for termination. For example, Ransome falsely claimed to have been laid off from Walmart in North Carolina due to COVID, when in fact Ransome had been laid off due to misconduct. Ransome also falsely claimed prior employment at Target, BestBuy, Lowe’s, and Hobby Lobby, and falsely claimed that he had been laid off from some of these companies because he had been diagnosed with COVID or due to lack of work because of the coronavirus, when he had never in fact been employed by those companies. As a result of the fraudulent scheme, during the relevant time period, Ransome applied for more than $150,000 in fraudulent UI benefits provided under the expanded CARES Act.
Ransome appeared before U.S. Magistrate Judge David S. Cayer and pleaded guilty to wire fraud in relation to a disaster benefit. The charge carries a maximum term of 30 years in prison and a $1,000,000 fine. A sentencing date for Ransome has not been set.
In making today’s announcement, U.S. Attorney Murray commended the U.S. Postal Inspection Service and the FBI for their investigative efforts, and thanked the Atlanta Regional Office of the U.S. Department of Labor, Office of the Inspector General, for their invaluable assistance.
The prosecution for the government is handled by Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte.
The Department of Justice and the U.S. Attorney’s Office for the Western District of North Carolina remain vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. If you think you are a victim of coronavirus fraud or have information pertaining to fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721or submit a complaint online using the NCDF Web Complaint Form. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.
Illegal Alien Sentenced for Unlawful Return After RemovalRead the Press Release
Gulfport, Miss. – Moises Joaquin-Antonio, 33, a citizen of Mexico, was sentenced on January 28, 2021 by U.S. District Judge Sul Ozerden to time served (3 months and 18 days imprisonment) and one year of supervised release for unlawful reentry by an alien after removal, announced Acting U.S. Attorney Darren J. LaMarca, and Michael J. Harrison, Acting Chief Patrol Agent of the Border Patrol’s New Orleans Sector. Joaquin-Antonio will also face Homeland Security removal proceedings. Joaquin-Antonio pled guilty on December 18, 2020 before Judge Ozerden.
On October 13, 2020, two U.S. Border Patrol Agents were assigned to targeted enforcement operations regarding aliens who had been officially removed from the United States and were suspected to have unlawfully returned to the local area. While conducting surveillance on Joaquin-Antonio’s suspected address in Biloxi, an agent reported that he observed Joaquin-Antonio get into a vehicle and leave the residence. The agent followed Joaquin-Antonio, and a second agent responded in a marked Border Patrol vehicle.
A traffic stop was conducted and Joaquin-Antonio was placed under arrest. He was transported to the Gulfport Border Patrol Station for further processing. At the Border Patrol Station, Joaquin-Antonio’s fingerprints were scanned through Department of Homeland Security electronic computer database systems. Joaquin-Antonio’s identity was confirmed through computer matches of his fingerprints with his earlier federal immigration records. The databases also produced prior photographs and other record information.
Joaquin-Antonio was positively identified as an alien who had been removed from the US. on four different occasions before returning and being arrested in South Mississippi. Acting U.S. Attorney LaMarca praised the efforts of the U.S. Border Patrol and the Department of Homeland Security. Assistant U.S. Attorney Stan Harris was the prosecutor for the case.
Hobart Man Sentenced to 15 Years in PrisonRead the Press Release
HAMMOND-Antonio M. Blunt, 41, of Hobart, Indiana, was sentenced by United States District Court Judge Philip P. Simon following his guilty plea to a production of child pornography charge, announced Acting U.S. Attorney Bell.
Blunt was sentenced to 180 months (15 years) in prison followed by a 12-year term of supervised release. He was ordered not to have future contact – direct or indirect – with the 4 year-old victim of his crime, and to pay restitution totaling $46,682 to cover estimated future therapy expenses. Following his release from prison, Mr. Blunt will be required to register as a sex offender in any state where he lives, works or attends school.
Pursuant to his plea agreement with the government, Mr. Blunt admitted that, while the child was in his care, he produced sexually explicit photographs of her. He knew the child was especially vulnerable, because she suffered from various physical ailments. Mr. Blunt uploaded the pictures to a cloud storage service and accessed them repeatedly.
“Those who sexually exploit children by producing child pornography cause great harm to their young victims and their deplorable actions will not be tolerated,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “This sentence should serve as a warning that the FBI and our law enforcement partners will always make it a priority to identify and hold accountable those who choose to take advantage of vulnerable children.”
This case is the result of the investigative efforts of the Federal Bureau of Investigation and the Hobart, Indiana Police Department. The case was prosecuted by Assistant U.S. Attorneys Jill Koster and Molly Kelley.
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Highmore Man Indicted on Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Highmore, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of a Firearm.
Stacy Alan Hansen, age 52, was indicted on October 14, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 27, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on the 17th day of August 2020, in Highmore, the 24th day of January 2020, in Pierre, and the 9th day of February 2020, in Miller, Hanson possessed multiple firearms after being previously convicted of a felony.
The charges are merely accusations and Hanson is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Hyde County Sheriff’s Office, the South Dakota Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael Elmore is prosecuting the case.
Hanson was released on bond pending trial. A trial date has not been set.
Hanford Man Sentenced to More Than 7 Years in Prison for Orchestrating Firearms Trafficking RingRead the Press Release
FRESNO, Calif. — Rafael Sanchez, Jr., 41, of Hanford, was sentenced today by U.S. District Judge Dale A. Drozd to seven years and three months in prison for orchestrating a large-scale firearms trafficking ring, U.S. Attorney McGregor W. Scott announced.
According to court documents, between April 2016 and March 2018, while residing in Hanford, Sanchez identified firearms available for purchase in Tennessee with the assistance of various co-conspirators residing there. Sanchez transferred money to the Tennessee co-conspirators, who used the money to purchase, package and ship the firearms to Sanchez in California. With the assistance of others, Sanchez identified California-based purchasers and offered to sell and sold to them the firearms he received from the Tennessee co-conspirators. Neither Sanchez nor the six charged co-conspirators were licensed to deal or import firearms, and Sanchez was prohibited from possessing firearms because of a pior felony conviction in Kings County Superior Court for assault with a deadly weapon.
Five other defendants charged in the case have been convicted and sentenced to various terms of imprisonment and probation, including Alexis Sanchez, of Kettleman City, Veronica Ramirez, of Lemoore, and Tennessee residents Victor Luna, Ashley Sanchez and Elvia Sanchez. A seventh defendant, Juan Daniel Gonzalez Mejia, of Tennessee, was convicted of firearms trafficking and is scheduled to be sentenced on May 21.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco and Firearms and the Federal Bureau of Investigation. The U.S. Postal Inspection Service, Lenoir City - Tennessee Police Department, Department of Homeland Security, and the U.S. Attorney’s Office for the Eastern District of Tennessee assisted in the investigation. Assistant United States Attorney Christopher D. Baker is prosecuting the case in the Eastern District of California.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian
Grand jury indicts St. Louis County woman accused of stealing packages from private mailboxesRead the Press Release
ST. LOUIS – A federal grand jury indicted 40-year-old Sherri Welch on two counts of theft or receipt of stolen mail this week. The U.S. Postal Inspection Service, with the help of the Hazelwood Police Department, arrested Welch on Thursday.
According to the indictment, on or about December 28, 2020, Welch stole a package addressed to another person in the 11000 block of Craig Manor Drive in St. Louis, MO. Also on December 28, 2020, Welch stole a package addressed to another person in the 6800 block of Teson Road in Hazelwood, MO.
For each count, Welch faces a maximum punishment of five years in prison and a fine of up to $250,000.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The Hazelwood Police Department and U.S. Postal Inspector’s Office investigated the case. Assistant United States Attorney John Ware is handling the case.
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Grand Jury Returns Superseding Indictment Charging First NBC Bank Executives and A Borrower with Bank Fraud and False StatementsRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that a grand jury returned a superseding indictment against ASHTON J. RYAN, age 73, of Kenner; WILLIAM BURNELL, age 71, of Kenner; ROBERT BRAD CALLOWAY, age 60, of Metairie; FRANK J. ADOLPH, age 61, of Kenner; and FRED V. BEEBE, age 62, of Donaldsonville, for defrauding First NBC Bank, the New Orleans-based bank that failed in April 2017.
According to the 49-count Superseding Indictment, from 2006 through April 2017, RYAN, BURNELL, CALLOWAY, BEEBE, and ADOLPH conspired to defraud First NBC Bank (the “Bank”) through a variety of schemes. RYAN was the President and CEO of the Bank for most of its existence. BURNELL was the Chief Credit Officer. CALLOWAY was an Executive Vice President. BEEBE was a Senior Vice President. ADOLPH was a borrower at the Bank who was charged with conspiring with the four Bank executives to obtain loans based on false statements and forged documents.
The Superseding Indictment alleges that RYAN, BURNELL, CALLOWAY, BEEBE, ADOLPH, and others conspired to defraud First NBC Bank by disguising the true financial status of certain borrowers and their troubled loans, concealing the true financial condition of the Bank from the Board, auditors, and examiners. The borrowers included real estate developer Gary Gibbs, real estate developer Kenneth Charity, Bank general counsel Gregory St. Angelo, factoring business owner FRANK ADOLPH, hotel owner Arvind “Mike” Vira, contractor Warren Treme, and contractor Jeffrey Dunlap. CALLOWAY was Gibbs’s loan officer while BEEBE worked as Treme’s loan officer. RYAN served as the loan officer or oversaw the loan officers for all of those borrowers. BURNELL approved the risk rating for all of these borrowers’ loans and was the gatekeeper tasked with protecting the safety and soundness of the Bank’s loan portfolio. Dunlap, Charity, St. Angelo, Vira, Gibbs, and Treme have all previously been charged in individual Bills of Information with conspiring to defraud First NBC Bank. All six of these borrowers are listed in the Superseding Indictment as members of the bank fraud conspiracy with RYAN, BURNELL, CALLOWAY, BEEBE, and ADOLPH.
During the course of the conspiracy, RYAN, BURNELL, CALLOWAY, and BEEBE repeatedly extended loans to borrowers who were unable to pay their loans without relying on loan payments to keep them current. To hide this practice, RYAN, BURNELL, CALLOWAY, and BEEBE made false statements in loan documents and elsewhere about the purposes of loans, the borrowers’ abilities to repay those loans, and the sources of funds used to pay those loans. When the borrowers were unable to pay those loans, RYAN, BURNELL, CALLOWAY, and BEEBE made new loans to these same borrowers and then used the proceeds from those new loans to pay the existing loans. This created the false impression that the borrowers were able to pay their loans, when in fact they would not have been able to pay their loans without going further into debt through new borrowing from the Bank. The new loans prevented these borrowers from appearing on lists that RYAN and BURNELL gave the Bank’s Board each month, which would have highlighted that the borrowers were unable to make loan payments or had cash flow problems. RYAN, BURNELL, CALLOWAY, and BEEBE also made false statements about the purpose of those loans, misrepresenting in Bank documents that the borrowers were able to pay loans with cash generated from the borrowers’ businesses, when in fact the borrowers were only able to pay those loans with proceeds from new Bank loans. The borrowers often spent the proceeds of these business loans on unrelated personal expenses, including by overdrawing their checking accounts at the Bank, and RYAN, BURNELL, CALLOWAY, and BEEBE paid these overdrafts by issuing new loans to the borrowers. This practice kept the borrowers off of month-end overdraft reports to the Board and hid the borrowers’ inability to pay their own expenses without new loan proceeds.
For certain loans, RYAN, BURNELL, CALLOWAY, and BEEBE included borrower documents in loan files despite knowing that the documents were false. For example, even after RYAN and BURNELL learned that ADOLPH was submitting falsified documents to the Bank to inflate his collateral, RYAN and BURNELL continued to submit loans for ADOLPH that included the false documents. Even though RYAN, BURNELL, and CALLOWAY knew that Gibbs could not pay his loans with cash generated from his businesses, they continued to submit loan documents that included false documents showing that Gibbs’s business earned enough cash to pay his loans at the Bank. Likewise, RYAN, BURNELL, and BEEBE submitted loan documents to authorize Bank funds to be loaned to Treme that included falsehoods relating to Treme’s creditworthiness and the purpose of the loans.
When members of the Board or the Bank’s outside auditors or examiners asked about loans to these borrowers, RYAN, BURNELL, CALLOWAY, and BEEBE made false statements about the borrowers and their loans, and left out the truth about the borrowers’ inability to pay their debts without getting new loans. As a result, the balance on these borrowers’ loans continued to grow. By the time regulators closed First NBC Bank in April of 2017, Gibbs owed the Bank $123 million; Charity owed $18 million; St. Angelo owed $46 million; ADOLPH owed $6 million; Vira owed $39 million; Treme owed $6 million; and Dunlap owed $22 million. The Bank’s failure cost the Federal Deposit Insurance Corporation deposit insurance fund just under $1 billion.
RYAN, BURNELL, CALLOWAY, and BEEBE each received substantial compensation from the Bank during the course of the conspiracy. RYAN also received personal benefits from three of the borrower relationships. Vira lent millions of dollars to RYAN at the same time Vira was a borrower at the Bank, and RYAN and Vira conspired to hide their business dealings from the Board, auditors, and examiners. Treme was RYAN’s partner in several businesses and real estate development projects, and RYAN used Treme’s borrowing from the Bank as a way to spend Bank loan proceeds on RYAN’s own projects. Even when parts of RYAN’s business dealings with Vira and Treme were revealed to regulators, RYAN continued to conceal from regulators that he exercised authority over loans to Vira and Treme. Dunlap was a contractor for a business that RYAN and Treme ran, and RYAN used loan proceeds from Dunlap’s business to benefit his own development project, Wadsworth Estates. RYAN never disclosed his business relationship with Dunlap to the Board, auditors, or examiners. BURNELL was aware of this business relationship and also never disclosed it to the Board, auditors, or examiners.
“Along with our partners, the FBI has dedicated significant time and resources toward investigating the failure of First NBC Bank, which resulted in nearly a billion dollar loss to the FDIC,” stated FBI New Orleans Special Agent in Charge Bryan Vorndran. “We will continue to investigate allegations of fraud by First NBC bank insiders until all those responsible for its failure are identified and brought to justice.”
“Today’s indictment sends a clear message that bank executives who engage in fraud that impacts the safety and soundness of financial institutions will be held accountable for their actions,” said Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection.
“Today’s indictment demonstrates the FDIC OIG and our law enforcement partners will continue to pursue individuals who defraud our insured financial institutions and cause harm to the nation’s banking industry,” said Anand Ramlall, Special Agent in Charge, Dallas Region, Office of Inspector General for the Federal Deposit Insurance Corporation.
RYAN, BURNELL, CALLOWAY, BEEBE, and ADOLPH are each charged in Count 1 of the Superseding Indictment with conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 1344 and 1349. RYAN, BURNELL, CALLOWAY, BEEBE, and ADOLPH are also charged with multiple instances of bank fraud, as listed in Counts 2 through 37, in violation of Title 18, United States Code, Section 1344. RYAN, BURNELL, BEEBE, and CALLOWAY are charged with making false entries in bank records, in violation of Title 18, United States Code, Section 1005, as listed in Counts 38 through 49. For each of the charged counts, the maximum penalties that may be imposed upon conviction are thirty years in prison; a fine of $1,000,000, or the greater of twice the gain to a defendant or twice the loss to any victim; up to five years of supervised release; and a $100 mandatory special assessment.
The United States Attorney’s Office stated that an Indictment is merely an accusation and that the guilt of the defendants must be proven beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation; the Federal Deposit Insurance Corporation, Office of Inspector General; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General. Assistant U.S. Attorneys Sharan E. Lieberman, Matthew R. Payne, Nicholas D. Moses, J. Ryan McLaren, and K. Paige O’Hale are in charge of the prosecution.
Goshen Lawn Care and Snow Removal Business Owners Ordered to Pay over $1 MillionRead the Press Release
SOUTH BEND – Michael Closson, age 52, and Laquita Closson, age 49, of Goshen, Indiana, were sentenced yesterday by United States District Court Judge Jon E. DeGuilio, announced Acting U.S. Attorney Bell.
According to documents in this case, Mr. and Mrs. Closson are married and own a lawn care and snow removal business in Goshen, Indiana. They were sentenced after each pleading guilty to conspiracy to defraud the United States. Mr. Closson also pleaded guilty to an additional count of tax evasion.
The Clossons were ordered to pay in restitution $662,027.00 to the IRS; $298,300.75 to the Indiana Department of Revenue; and $64,732.39 to Medicaid. In addition to the restitution, Mr. Closson was sentenced to prison and Mrs. Closson was sentenced to home detention.
During tax years 2012 through 2016, the Clossons intentionally concealed their income from the IRS by filing false joint income tax returns that underreported their actual income. The Clossons failed to report more than $2 million dollars in gross receipts, which resulted in them evading more than $600,000 in federal income taxes and almost $300,000 in state income taxes. The Clossons also submitted false Medicaid application forms that allowed them to unlawfully receive nearly $65,000 worth of Medicaid benefits. The Clossons own two homes, a timeshare, over $10,000 worth of luxury handbags, and four vehicles, including a Lamborghini and a Cadillac Escalade.
"Honest and law abiding taxpayers are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money as well as skirt their tax obligations," said Tamera Cantu, IRS Criminal Investigation, Acting Special Agent in Charge, Chicago Field Office. "Today’s sentencing is a direct result of IRS Criminal Investigation working together with the Northern District of Indiana U.S. Attorney’s office to protect America’s honest, hard-working taxpayers," said Cantu.
The case was investigated by the Internal Revenue Service, Criminal Investigation Division. This case was prosecuted by Assistant U.S. Attorney Luke N. Reilander.
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Gang Member Sentenced for Second Federal Firearm OffenseRead the Press Release
BOSTON – A man affiliated with the Junior Kaos gang in Boston was sentenced yesterday in federal court in Boston for illegally possessing a firearm and ammunition, as well as for related violations of federal supervised release. At the time of the offense, the defendant was on supervised release for a previous firearm conviction.
Dwayne Leaston-Brown, 31, who most recently resided in Brockton, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 57 months in prison and three years of supervised release for the new offense. He was also sentenced by U.S. District Court Judge Richard G. Stearns to an additional six months in prison for violating the conditions of his supervised release.
In October 2020, Leaston-Brown pleaded guilty to one count of being a felon in possession of a firearm and ammunition. He was arrested by the Boston Police Department in September 2018, charged federally in November 2018, and has been in custody since his federal arrest.
On Sept. 8, 2018, after a verbal confrontation, Leaston-Brown drew a firearm on another gang member on a sidewalk outside a restaurant on Blue Hill Avenue in Boston. The other individual, who was also armed with a firearm, then chased Leaston-Brown through Mattapan Square. This armed chase was interrupted by a police officer who saw Leaston-Brown running, attempted to stop him, and ultimately recovered the loaded firearm from him near the corner of Fairway Street and Blue Hill Avenue in the Mattapan Square area. Police also recovered the other individual’s firearm, and he has been charged by the state.
Federal law prohibits Leaston-Brown from possessing a firearm or ammunition due to a prior felony conviction. In November 2014 he was convicted of being a felon in possession of a firearm and served 46 months in prison. At the time he committed the charged offense, he was on supervised release. Leaston-Brown’s conditions of supervised release included that he not commit any further federal, state, or local offenses, and that he not possess any firearms or ammunition – conditions that he violated when he committed the new offense.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; and Boston Police Commissioner William Gross made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Fraudster Sentenced for $400,000 Motorized Surfboard ScamRead the Press Release
ALEXANDRIA, Va. – A Palm Bay, Florida man was sentenced today to six years in prison for an investment fraud scheme involving the supposed production and sale of motorized surfboards.
According to court documents, Roberto Clark, 50, previously a resident of Bethesda, Maryland, operated a scheme to defraud small investors in Virginia, Maryland, and the District of Columbia. As part of the scheme, Clark falsely promised that the investments made with Clark’s company, KRM Services, would go toward manufacturing “Jetboards” for resale to third parties at substantial profits. Instead, Clark spent the money on maintaining his lavish lifestyle.
To execute the scheme, Clark falsified sales contracts with cruise lines and water sports companies; forged signatures and notary stamps; fabricated emails from supposed buyers of the Jetboards; and falsified a patent report so that it would appear he could obtain a patent on the Jetboard. He provided all of this false information to investors to convince them to invest in KRM Services. In reality, Clark had purchased a Chinese-made motorized surfboard that had serious mechanical and design problems and never properly functioned. Clark never sold a single surfboard to any buyer.
Clark primarily defrauded small investors, including people he met socially in local restaurants and bars. He maxed out one victim’s personal credit card on Christmas Eve so that she could not buy her daughter a present or travel to see family. According to court documents, Clark stole more than $400,000 from 14 victims between 2016 and 2019, causing substantial financial hardship to a number of them.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; Matthew S. Miller, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office; and Michael L. Brown, Alexandria Chief of Police, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III. The Fairfax County Police Department and the Securities and Exchange Commission also provided assistance in the investigation.
Assistant U.S. Attorneys Russell L. Carlberg and Kimberly Riley Pedersen prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-332.
Former Roanoke Pharmacist Sentenced for TamperingRead the Press Release
ROANOKE, Va. – Bryan Wade Lewis, a former pharmacist at Home Choice Partners in Roanoke, was sentenced yesterday in U.S. District Court here for tampering with a consumer product, hydromorphone, that affected interstate commerce. Acting United States Attorney Daniel P. Bubar made the announcement today.
Lewis, 35, of Roanoke, Virginia, was sentenced today to 12 months and 1 day in federal prison. He pleaded guilty in September 2020 to one count of tampering with a consumer product.
“Tampering with powerful narcotics can harm patients and will not be tolerated,” said Acting U.S. Attorney Bubar. “We appreciate the good work on this case by FDA, DEA, DHP, and VSP that brought Lewis to justice and demonstrates our commitment to ensure the public receives safe and unadulterated medication.”
“Those who knowingly tamper with and steal medicines risk harming patients by depriving them of their prescribed therapies,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to protect the public health and bring to justice healthcare professionals and others who take advantage of their position and compromise patients’ health and comfort by tampering with needed drugs.”
According to court documents, in January 2018 an employee at Home Choice Partners in Roanoke discovered a needle, alcohol pad, and a bloody tissue in the toilet of an employee bathroom and reported it to another employee. When asked by that employee if he knew anything about the items, Lewis said the items may have fallen out of his pocket. The employee contacted human resources and a decision was made to drug test all employees.
Lewis, who was scheduled to be off work on the day of the drug test, was instructed to report to work to be administered a drug screening. However, Lewis contacted an employee and explained that he was the employee responsible for the items in the toilet. When asked, Lewis explained he had been engaging in such conduct for nine months. Lewis admitted there was a 50 ml vial of hydromorphone in the back of the narcotics cabinet that did not contain hydromorphone, but instead had been replaced, by him, with saline.
The investigation of the case was conducted by the U.S. Food and Drug Administration – Office of Criminal Investigations, Drug Enforcement Administration Diversion Control Division, Virginia Department of Health Professions, and Virginia State Police. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.